• Setting up of a LLP/Pvt Ltd

Dear Madam/Sir , 

We are group of 3 friends engaged in the business of F&O (Futures & Options ) trading . 
As we would like to set up a company , we decided to set up LLP . 

However the agency we have hired for the purpose of setting up the LLP has told us to set up Pvt Ltd since as per them LLP's cannot open demat / trading account or cannot engage in the business of derivatives , F&O trading . 

Please help me to understand if their understanding is right . Maintaining Pvt Ltd is an expensive affair and we have no plans to either raise external funds or give ESOP's etc. 
Please also tell which MCA code will be applicable in case LLP can be set up to do above business.
Asked 13 days ago in Corporate Tax

I don't think LLP cannot do such business as I haven't heard of any such restrictions.

Also practically we are consulting for one such LLP engaged in business of trading in shares so I don't think that will be an issue.


Also there is not much of a difference in expense between LLP and company.


Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you

Naman Maloo
CA, Jaipur
3875 Answers
51 Consultations

5.0 on 5.0

I am not sure about the code as I am a chartered accountant not a company secretary but it can be code no. 74 as no other suitable option available.

Naman Maloo
CA, Jaipur
3875 Answers
51 Consultations

5.0 on 5.0



In my opinion, there is no restriction for an LLP to do stock trading. However, in the past there were some issues while registering LLP for such business. Currently, I haven't heard any such issues.

For code, I need to check and get back to you.

Lakshita Bhandari
CA, Mumbai
5557 Answers
649 Consultations

5.0 on 5.0

- You can do F&O trading through LLP and open demat account in the name of LLP.

Vivek Kumar Arora
CA, Delhi
4222 Answers
399 Consultations

5.0 on 5.0

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